The
German economy unexpectedly stagnated in the last quarter of 2019 on slowdown
in both spending and exports, preliminary GDP figures released on Friday showed.

Europe’s
biggest economy recorded no growth in the October-December quarter, yet the
third-quarter figures were revised up to 0.2 percent growth from 0.1 percent.
Analysts had estimated a growth of 0.1 percent. In 2019 as a whole, Germany
expanded only 0.6 percent.

“After
a very strong third quarter, the final consumption expenditure of both
households and government slowed down markedly. Trends diverged for fixed
capital formation,” said Destatis, Germany’s statistics body
.

The
US-China trade war, slowdown in the euro area and changes in the auto industry all
weighed on the growth pace in Germany.

Later
in the day, the euro area’s flash GDP may signal a 0.1 percent growth in the
fourth quarter.

As of 07:47 GMT, the
euro hit another record low versus the U.S. dollar to trade at 1.0842 after
hitting a bottom of 1.0827, the lowest since April 2017.

LEAVE A REPLY

Please enter your comment!
Please enter your name here